The new law creates a complaint referral service to investigate fraud on public construction sites.
In response to surprising reports of violence and threats at state construction sites, particularly against women, the Alan government has introduced new laws aimed at reforming the industrial culture.
Victorian Prime Minister Jacinta Alan highlighted the government’s commitment to reform, saying “the government is moving forward quickly to eradicate the rotten culture exposed in some of the Victorian construction sector.”
As part of the effort, the Prime Minister has announced an independent sector review to strengthen the powers of regulatory bodies in responding to criminal or illegal conduct allegations.
This review evaluates “the gaps or limitations of Victorian law and interactions with federal authority.”
A new approach to regulation
A key recommendation from the independent Wilson Review, the Wage Theft Amendment Bill 2025 will create a dedicated service to handle complaints about fraudulent public construction projects, making it directed towards the appropriate investigator.
“This will facilitate complaints and provide a single entrance/exit for problems to occur and act, with a special focus on complaints that pose a threat to women’s safety,” the government said.
The new complaint service will be managed by labour force inspector Victoria.
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The service also covers other worker protections, including child employment, long service leave and protection of contractors.
Amidst the wider reforms, recent changes to federal law now make wage theft a criminal offence across Australia, so Victoria will repeal its own state law on the issue and rely on a new federal framework.
“Criminal and illegal behavior does not exist in the Victoria construction industry,” said Jaclyn Sims, Minister of Industrial Affairs. “This new complaint service will help you get rid of bad behavior at work.”
Government actions follow the interference of media investigations that expose violent incidents in state-funded construction projects.
One report showed safety officials related to bicycles allegedly attacking women on the scene.
Another revealed a violent offender convicted of detaining a woman in a locked space in a government hospital project while smoking illegal drugs.
Opposition parties are calling for stricter measures
The government is trying to address issues regarding regulatory reform, but the opposition parties are advocating a more aggressive approach.
Taking inspiration from the US “assault laws,” the coalition argues that addressing individual criminals is not sufficient and that criminal organizations within the industry need to be dismantled.
The Union has announced a reform package modelled in the US to dismantle what is known as “criminal hubs” within the CFMEU.
“We need to chase not just individuals, but criminal organizations,” said coalition leader Peter Dutton.
The U.S. Assaulter Impact and Corrupt Organizations (RICO) Act helped dismantle organized crime in the 1970s by allowing authorities to target entire criminal networks and imposing severe penalties to stop future crime.
Former gangster Michael Franzet pointed out that Rico’s harsh sentence led many criminals to abandon their activities rather than risk decades in prison.
But the coalition’s attempt to introduce it in Congress opposed both workers and greens. He argues that the government’s new approach is more effective in dealing with construction site fraud.
